This study aims to examine whether family control has a positive effect on earnings management of manufacturing companies and whether leverage weakens the positive effect of family control on earnings management. This study uses panel data for the 2015-2019 observation year. The research...

While financial statements are the primary source of information about a firm, they tend to be under earnings management practices, namely to avoid paying tax. Therefore, we aim to examine whether taxes still affect earning persistence in an era of prevalent digital information. For that...

With the wave of M&A, total amount of goodwill balances has been accumulated to a enormous number in Chinese capital market. Accounting Standards is controversial about high discretion in the goodwill subsequent measurements. This study examines whether goodwill book value is consistent with...

This study examines the relationship between chief executive officers' (CEOs') characteristics (e.g., tenure, experience, education, age and compensation) and accounting conservatism for a sample of 672 yearly observations from both Jordanian industrial and service companies listed on the Amman...

The modernization theory forecasts a sharp declining effect of institutionalized religion on human behavior owing to the extensive economic development. However, this prediction is rejected and proved that religious values and beliefs have a pervasive influence on individual conduct. Based on...

This study investigates how acquirers manage earnings between an acquisition announcement and deal completion (defined as the interim period of acquisitions). We find that acquirers manage their earnings downwards during this interim period and boost reported earnings in the following period....

This study documents that big bath accounting following CEO turnovers is pervasive worldwide and shows that the extent to which CEOs engage in big bath accounting is associated with the degree of discretion they have available in their respective countries. Our analysis is based on a new...

We examine the role of firms’ life cycle stages on accrual quality. We expand evidence from prior studies that investigate the properties of firm life cycle and accrual quality in an integrated approach. We find that growth and mature firms report higher quality of accruals than firms in the...

This paper investigates the role of central bank digital currency (CBDC) in bank earnings management, and focus on how CBDC activity might influence banks to engage in accrual earnings management using loan loss provisions (LLPs) and the implications for earnings quality. I show that banks will...

Meeks and Meeks (2022, MM for short)* has a question in its subtitle, Why spend ever more on mergers when so many fail? There are three interwoven strands in the book’s answer:First, contracts (explicit and implicit) often reward key players in the M&A market — executives and advisers —...

In this study, we investigate the relationship between tax avoidance and earnings management in the largest five European Union economies by using artificial neural network regressions. This methodology allows us to deal with nonlinearities detected in the data, which is the principal...

The Current Expected Credit Loss (CECL) standard took effect in 2020 during the onset of the unprecedented global pandemic. Proponents of CECL argue that the regulation can provide timelier provisions, while others are concerned about the potential for heightened reported earnings volatility. In...

Leveraging the required disclosure of three-year before initial public offering (IPO) data in Chinese IPO firms, we examine the real earnings management (REM) around IPOs with specific reference to IPO firms with and without a customer strategic alliance (CSA) relationship before IPO. Using a...

Under the strategic background of regional coordinated development, the County to District can remove administrative barriers and reduce local protection. Based on the matching data of Chinese A-share listed companies from 2000 to 2018 and the County to District Reforms, this paper empirically...

Earnings management is a behavior performed by management to show good performance to principals. This effort creates information bias in the study of agency theory, which in turn increases information asymmetry. In Indonesia, the average company has a family ownership structure. Therefore, this...

The aim of this study was to examine the moderating effect of ownership concentration (OC) on the relationship between impactful female directors and earnings management (EM). The study concentrated on firms with the lowest positive earnings, measured by return on assets. The results showed that...

This paper examines whether the financial reporting quality of audit clients is affected more by the national culture of the home country of an international parent audit firm or the national culture of its affiliates' host country. The study uses 111,949 firm-year observations for 16,444 unique...

Aim/purpose - Higher compensation and increased share ownership are believed to drive fewer earnings management. Therefore, the study examines the moderating impact of share ownership on the relationship between executive compensation and earnings management of listed Deposit Money Banks in...

This study contributes to the emerging literature on board co-option by examining how and to what extent co-opted directors influence managers’ attitudes about earnings management. We find robust evidence that co-option mitigates both real activities and accrual-based earnings management. Our...

This paper explores the relationship between ESG ratings and real earnings management using the data of Chinese listed companies from 2008 to 2021. We find that ESG ratings and real earnings management are negatively correlated. It reveals that the improvement of ESG rating will help to improve...

This study investigates the relationship between environmental, social, and governance (ESG) scores and potential tendencies to manipulate the earnings of telecommunication companies. We assumed a negative relationship between ESG scores and earnings management since the companies with higher...